Argentina second-worst Latam country in terms of foreign direct investment

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Argentina’s poor performance in the 21st century when it comes down to direct foreign investment is only surpassed by that of Venezuela; it was reported Sunday by Infobae.

According to the latest data from the United Nations Conference for Trade and Development (UNCTAD), inflows of cash from abroad into Argentina plummeted 38% in 2020 to barely US $ 4.1 billion.

Globally, FDI flows fell 35% to $ 1 trillion, up from $ 1.5 trillion in 2019.

Since 2020, many foreign companies have already left Argentina, some of them after the restrictions from the coronavirus pandemic coupled with macroeconomic instability and a total lack of clear rules. But many of them had already been harbouring the thought for quite a while.

A Harvard University Business School study released last week showed that after 20 years in the country many businesses have chosen to move to Uruguay due to the exodus of professionals and companies.

According to a report by First Capital Group quoted by Infobae, there have been at least 32 operations and/or announcements in which a multinational group decides to close and/or sell its operation or local business unit in Argentina since August 2019. Among those who have left the country for good are the airlines LATAM, Norwegian and Air New Zealand; the auto part company Saint Gobain Sekurit; the Walmart supermarket chain and the Falabella retail chain; in addition to the sportswear Nike brand, among others.

“In 2010, Argentina had a stock of foreign direct investment of around USD 85,000 million and at the end of 2019 it had dropped to the equivalent of USD 69,170 million. Foreign FDI in 10 years grew 70% in the world, while in Argentina it fell by more than 19%,” economist Marcelo Elizondo told Infobae.

Source: Infobae

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